Aura Energy Ltd · ASX:AEE
Aura Energy — Investor Presentation (July 2012)
29 slides from Aura Energy's investor presentation, Jul 19, 2012
Slide 1: Aura Energy Ltd Investor Presentation
For personal use only “developing uranium projects” Aura Energy Ltd Investor Presentation July 2012 “rapidly advancing uranium projects”
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement For personal use only This presentation has been prepared to provide information on Aura Energy Limited’s projects. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. This presenta
Slide 3: Advanced uranium projects – 688 Mlbs U3O8
Advanced uranium projects – 688 Mlbs U308 For personal use only 631 Mlbs U308 50.2 Mlbs U308 7 Mlbs U308 Market capitalisation: A$22.4 M 3 “rapidly advancing uranium projects”
Slide 4: An exceptional year for Aura Energy
An exceptional year for Aura Energy For personal use only Aura Energy Ltd hold 100% two substantial projects – Häggån in Sweden and Reguibat in Mauritania • Häggån Project resource upgrade to 631 Mlbs U308 • Independent Project NPV valuation of $1.85B at a 10% discount rate from Scoping Study • Seco
Slide 5: Sweden – a top mining destination
Sweden – a top mining destination For personal use only historic culture of mining - legislation & regulations very supportive Europe’s largest copper mine & biggest iron ore producer low sovereign risk mining destination – tops Fraser Institute survey low corporate tax rate & royalties nuclear powe
Slide 6: Excellent location & infrastructure
Excellent location & infrastructure For personal use only “rapidly advancing uranium projects”
Slide 7: 631Mlbs U3O8 resource underpins viability
631Mlbs U₃O₈ resource underpins viability For personal use only giant multi-metal deposit underpinned by huge uranium resource (2011) 631Mlbs U₃O₈ inferred resource with 1.79Bn tonnes @ grade – 160 ppm U₃O₈₈ enhanced value with co-products: nickel - 1277Mlbs zinc - 1790Mlbs molybdenum - 840 Mlbs equ
Slide 8: 2012 drilling will add to the resource base
2012 drilling will add to the resource base For personal use only Substantial intersections at Häggån - starting close to surface 137m @ 154ppm U3O8 147m @ 170ppm U3O8 148m @ 154ppm U3O8 New intersections in Marby permit to north 180m @ 141ppm U3O8 Aura’s Häggån 2012 drilling 8 “rapidly advancing ur
Slide 9: Proven recovery method selected
Proven recovery method selected For personal use only Conventional Bacterial Bacterial acid tank leach heap leach high OPEX & high CAPEX low CAPEX CAPEX lower OPEX low OPEX negative NPV negative NPV positive NPV financially robust “rapidly advancing uranium projects”
Slide 10: Bacterial leaching overview
Bacterial leaching overview For personal use only bacterial leaching identified as a method to obtain similar high U recovery as conventional acid leaching insoluble metal sulphides converted into water-soluble metal sulfates micro-organisms produce leaching chemicals through oxidation of ferrous to
Slide 11: New bioleach results support original testwork
New bioleach results support original testwork For personal use only Uranium extraction confirmed with up to 85% achieved Scale up of bioleaching columns from 0.5m height to 2m height achieved comparable recovery results Low acid consumption confirmed Results strongly support selection of low-cost b
Slide 12: Low cost, low risk, large mining project
Low cost, low risk, large mining project For personal use only Independent scoping study by RMDSTEM completed on back of exceptional metallurgical results: initial pit shells contain >741 Mt inferred resource planned nominal 30 Mtpa operation with 25 year initial mine life - scope to expand low mini
Slide 13: Häggån would be 3rd largest producer
Häggån would be 3rd largest producer on these assumptions For personal use only 18.00 16.00 14.00 Grey: Operating mines 12.00 Annual production Mlbs Green: Selected planned operations 10.00 8.00 6.00 4.00 2.00 0.00 Source: www.wise-uranium.org “rapidly advancing uranium projects”
Slide 14: Häggån: $1.85 billion NPV project
Häggån: $1.85 billion NPV project For personal use only independent scoping study confirms economic viability for bioheap leach project mean NPV US$1.85B (pre-tax, 10% discount rate, $65/lb uranium price) IRR of 49% payback <5 years project cash flow positive below $30/lb “rapidly advancing uranium
Slide 15: Low operating & capital costs for large sized project
Low operating & capital costs for large sized project For personal use only Häggån operating costs $9.30/t Operating costs: – US$13/lb U308 when nickel & molybdenum treated as by-products – US$26/lb U308 when nickel & molybdenum are included as U3O8 equivalents pre-production capital of US$537M & su
Slide 16: Barrick's Zaldivar copper project in Chile
Barrick's Zaldivar copper project in Chile For personal use only large bioheap leach project analogue $8-9/tonne opex operating margin of $12/tonne similar to operating margin to Häggån “rapidly advancing uranium projects”
Slide 17: Development Timeline for Häggån
Development Timeline for Häggån For personal use only 2012 2013/14 Scoping study results confirmed Complete pre- Begin permitting economic viability feasibility study applications of $1.8B project Uranium Next-stage production at metallurgical Commence Häggån testwork & bankable Plant construction r
Slide 18: Strong position in Mauritania
Strong position in Mauritania For personal use only Reguibat Project - greenfield discovery of significant new uranium field 100% properties plus 2 joint venture permits one of largest land holders - 11,000 km2 with 40% of known radiometric anomalies “rapidly advancing uranium projects”
Slide 19: Substantial first resource – 50 Mlbs
Substantial first resource – 50 Mlbs For personal use only major calcrete uranium resource initial JORC compliant resource: 50Mlbs U3O8 at average grade of 330ppm mineralisation in single flat-lying sheets from within 1m of surface mineralisation 1-10m thick very competitive with other global calcre
Slide 20: Extensions to resource in 2012 drilling
Extensions to resource in 2012 drilling For personal use only strong uranium mineralisation extends beyond boundaries of current resource limits intercepts include: 4.5m @ 850 ppm U3O8 2.5m @ 823 ppm U3O8 3.5m @ 618 ppm U3O8 2.5m @ 615 ppm U3O8 strong & thick mineralisation located in areas with onl
Slide 21: Moving from explorer to developer
Moving from explorer to developer For personal use only big projects, low costs, heading to commercialisation 2 major Sweden, Häggån: major project moving forward projects $1.8 billion project, top 5 global uranium mining operations potential Mauritania, Reguibat: major calcrete uranium resource est
Slide 22: Appendices
For personal use only Appendices “rapidly advancing uranium projects”
Slide 23: Corporate Snapshot
Corporate Snapshot ASX: AEE For personal use only Share price: 14.5c (23 May 2012) Market capitalisation: A$22.4 M Cash position: $1.7 M (30 June 2012) Shares: 154,423,544 Share price performance – Last 12 months 0.4 0.35 0.3 0.25 0.2 $ AUD 0.15 0.1 0.05 0 23 “rapidly advancing uranium projects”
Slide 24: Uranium market & energy demand
Uranium market & energy demand For personal use only Source: WNA “rapidly advancing uranium projects”
Slide 25: Swedish operating open-cut mines
Swedish operating open-cut mines For personal use only Project Company Mineral Established Gruvberget LKAB Iron Ore 2010 Aitik New Boliden Copper 1968 Maurliden New Boliden Iron Ore 2000 Svartliden Dragon Mining Gold 2004 Björkdal Björkdalsgruvan Gold 1989 Aitik Copper Pit Björkdal Gold Mine “rapidl
Slide 26: Heap leach case model assumptions
Heap leach – 30 Mtpa case For personal use only Model input financial assumptions (USD) Item Value Unit Commodities* U3O8 65 USD/lb Ni 7.90 USD/lb MoO3 16 USD/lb V2O5 8.50 USD/lb Others Electricity 0.50 kWh NaHS 450 USD/t Sulphuric Acid 250 USD/t * Long term prices from public sources “rapidly advan
Slide 27: Management Team
Management Team For personal use only Dr. Bob Beeson – Managing Director Bob is a professional geologist with over 35 years of experience in mineral exploration and development. He has held senior management positions with Billiton Australia, Acacia Resources, North Limited and New Hampton Goldfield
Slide 28: Häggån Resource Statement
Häggån Resource Statement For personal use only Category Cutoff Size U3O8 MoO3 V2O5 Ni Zn U3O8 ppm U3O8 Bt ppm ppm ppm ppm ppm Inferred 100 1.791 160 214 1551 324 545 Competent Persons for Häggån Resource Mr. Simon Gatehouse takes responsibility for estimation of uranium and associated metals in the
Slide 29: Reguibat Resource Statement
Reguibat Resource Statement For personal use only Category Lower Cutoff Tonnes Grade Contained U308 ppm U3O8 Mt ppm U3O8 Mlb Inferred 100 68.7 330 50.2 150 67.3 340 49.9 200 60.7 350 47.3 250 48.8 380 41.3 300 35.8 420 33.4 Competent Persons for Reguibat Resource The Competent Person for the Requiba